VanEck, Grayscale launch Solana ETFs; price swings, inflows key
Summary
- VanEck introduced a Solana ETF on Nasdaq Nov. 17, offering institutional access, with initial fees waived and staking rewards passed to investors.
- Grayscale launched a spot Solana fund in late October, gathering significant assets quickly and sharing staking yield with investors after reducing fees.
- Solana’s price declined sharply recently amid volatile trading, while analysts expect ETF inflows to hinge on the token’s market direction and critical support levels.
VanEck launched its Solana exchange-traded fund on Nasdaq on Nov. 17, providing institutional access to the cryptocurrency, the company announced.
The fund was seeded with an initial basket purchased at the end of October, according to regulatory filings. VanEck will waive the sponsor fee for a limited period on the first tranche of assets, though the ETF charges a unified expense ratio. State Street Bank will serve as administrator, with crypto custody provided by two major custodians, the filings showed.
The fund plans to stake a portion of its Solana (SOL) holdings through third-party validators, with staking rewards accruing to the fund’s net asset value, according to the custodian. The initial staking provider has agreed to waive its fee during the fee-waiver period.
Grayscale launched a spot Solana fund in late October, accumulating significant assets by mid-November driven by record inflows in its first days, making it the first U.S.-listed Solana ETF. Grayscale charges a management fee and recently reduced its staking fee until the fund reaches a certain size, passing most staking yield to investors, according to company statements.
Solana’s price has declined sharply in recent weeks, trading well below its level from a month earlier as of mid-November, according to market data. The token peaked earlier in the year and has been correcting since. Market analysts have identified a nearby price band as critical support. A break below that level could push prices lower, while a sustained move above a higher threshold would signal weakening bearish momentum, analysts stated. Trading volumes have increased with volatility.
Some analysts have projected sizable combined inflows for Solana-linked funds in their first year. The performance of the new funds will depend on Solana’s price trajectory, according to market observers.
